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Like a tiny, triangle-shaped ship avoiding a gigantic space boulder in Asteroids, Atari avoided complete financial implosion by securing financing during its bankruptcy proceedings.
The long-lived publisher announced today that it landed $2 million in-interim debtor-in-possession financing, which is any investment a company receives while under Chapter 11 bankruptcy protection. Atari did not disclose its investors. It will use this money to give it time to evaluate its financial outlook.
“The interim DIP financing enables Atari to finance its near term ordinary course business while evaluating its strategic options,” Atari chief executive officer Jim Wilson said in a statement. “Our lawyers are already hard at work on completing the final DIP credit documents, which, once approved by the court, will enable Atari to access the remaining $3 million of availability under the loan.”
The publisher filed for bankruptcy in January in a move to separate from its French parent company Atari S.A. (formerly Inforgrames). Atari still holds the rights to well-known classics like Pong, Asteroids, Centipede, Missile Command, Battlezone, and Tempest along with the Dungeons & Dragons license.
The company also announced today that it hired investment-banking firm Perella Weinberg Partners to evaluate the company’s strategic outlook, including looking into the potential results of selling off company assets and intellectual properties.
“We hired Perella Weinberg Partners, which is subject to court approval, because they clearly understand and are excited about the significant opportunity associated with the iconic Atari brand and its rich library of classic arcade and more recent game franchises,” said Wilson. “The global reach and breadth of Atari have the potential for significant value creation in games, media & entertainment, technology, and licensing sectors and provides a great opportunity for the Company’s stakeholders.”
Before filing for bankruptcy, Atari was working on casual games and a real-money gambling title called Atari Casino.